rue21 filed with the U.S. Bankruptcy Court a First Amended Joint Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “Subject to confirmation of the Plan, upon the Effective Date, the Debtors will have reduced approximately $700 million in funded debt from the Debtors’ balance sheet, providing the Debtors with the capital necessary to fund ongoing operations. Upon exiting these Chapter 11 Cases, the Reorganized Debtors’ capital structure will consist of the Exit ABL Facility in the aggregate principal amount of up to $125,000,000 at any time outstanding (with approximately $38.6 million expected to be outstanding on the Effective Date) and the Exit Term Loan Facility in the aggregate principal amount of $50,000,000, plus the amount of any unpaid and accrued interest under the DIP Term Loan Credit Facility as of the Effective Date (which interest shall be capitalized as principal on the Effective Date.”
In addition, “The Prepetition Term Loan Secured Claims are Allowed in the aggregate principal amount of not less than $249,700,000, plus any accrued but unpaid interest thereon payable as of the Petition Date at the applicable interest rate and any accrued but unpaid fees and expenses payable in accordance with the Prepetition Term Loan Documents….The Unsecured Notes Claims are Allowed in the aggregate principal amount of not less than $239,200,000, plus any accrued but unpaid interest payable thereon as of the Petition Date at the applicable interest rate and any accrued but unpaid fees and expenses payable in accordance with the Unsecured Notes Indenture.” The Court scheduled an August 28, 2017 hearing to consider the Plan, with objections due by August 21, 2017.
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